What is the cost per franchise used to calculate the B Bops development fee?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Development Fee. If you elect to purchase development rights under the multiple-unit arrangement, you must pay the Company a development fee. The amount of the development fee will vary and will be determined by multiplying $5,000 times the number of Franchises to be developed according to the development schedule. The sum of $5,000 of the development fee will be allocated towards satisfaction of the initial franchise fee payable for each Franchise established under the Development Agreement. If you establish all of the Franchises specified in the development schedule, the entire development fee will be applied towards payment of the initial franchise fees due to the Company. If you fail to comply with the development schedule (or otherwise default under the Development Agreement) and the Development Agreement is terminated, the Company will be entitled to retain that portion of the development fee that has not been applied towards payment of initial franchise fees prior to such termination. The development fee must be paid upon execution of the Development Agreement. You will receive a credit of $5,000 toward payment of such fee from the deposit paid upon execution of the Application Agreement (see below). Except as noted below, the development fee is not refundable in whole or in part under any circumstances.
Source: Item 5 — INITIAL FEES (FDD pages 12–14)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the development fee for a multiple-unit arrangement is calculated by multiplying $5,000 by the number of franchises to be developed under the development schedule. This fee is paid upon execution of the Development Agreement. A credit of $5,000 from the initial deposit paid during the Application Agreement will be applied towards this fee.
For a prospective B Bops franchisee, this means that if they commit to developing multiple franchise locations, they will need to pay a development fee upfront. For example, if the development schedule requires the franchisee to open 5 locations, the development fee would be $25,000 (5 x $5,000). This fee compensates B Bops for granting the franchisee the exclusive right to develop those locations within a specified territory and timeframe.
It's important to note that the development fee is generally non-refundable, except for the initial $5,000 deposit which may be partially refundable if the Development Agreement is terminated early. However, if the franchisee fulfills the development schedule, the entire development fee will be applied towards the initial franchise fees for each location. If the franchisee fails to meet the development schedule, B Bops is entitled to retain the portion of the development fee that has not yet been applied to initial franchise fees.